In this video Cesar Hidalgo at MIT asks intriguing questions about how social and economic systems interact. He sees networks as holding the knowledge and know-how necessary to ‘crystallise’ information into the things we use every day. The capacity of a network to hold this sort of knowledge and know-how is thus for him directly linked to economic activity. It helps explain how economic growth is variable and differs from place to place. It says that a theory of economics that doesn’t take into account the social complexity of society and its networks is incomplete. This 20 minute address at the RSA is a rapid tour through Cesar’s work. It is expanded in more depth in his book ‘Why information grows’. If you are exploring how social networks relate to economic activity this is well worth a look. (Available at childalgo.com)
